If you are planning to rent a home in Japan, one of the most important things you will encounter is guarantor companies for apartments and the insurance or rental guarantee they require. This system is very different from many other countries, and it helps landlords protect themselves from unpaid rent and property damage. In Japan, most landlords will require either a guarantor for rent (someone who takes financial responsibility) or using professional rent guarantor companies to secure a lease.
Why this system exists in Japan
Unlike many Western countries where a security deposit is often enough, in Japan the rental market has traditionally required a personal guarantor (連帯保証人 or rentai hoshonin). This person agrees to pay your rent if you cannot. Typically the guarantor must be a Japanese citizen or permanent resident, over 20 years old, and have stable income. This can be very difficult for foreign residents who do not have family or friends in Japan who meet these requirements.
Because of this difficulty, guarantor companies, also known as hoshō gaisha (保証会社), became widespread around the early 2000s and are now common in most lease agreements. They act as a professional guarantor for rent in exchange for a fee. Many landlords now prefer this over a personal guarantor.
What is a guarantor company for apartments
A guarantor company is a business that agrees to guarantee your rental agreement when you cannot pay rent or cause property damage. When you sign a lease, the landlord or real estate agency will often require you to apply to one of the companies they work with. They will evaluate your visa status, employment, income, and sometimes credit history before approval.
Once approved, the guarantor company becomes legally responsible for paying your rent to the landlord if you default. They will later collect the amount from you including fees or charges. This system gives both landlords and tenants more security and makes it easier for people without a local guarantor to rent.
Typical fee structure
Initial payment: Often 50–100% of one month’s rent
Annual renewal fee: Around ¥20,000 to ¥30,000 each year
Processing fees: Sometimes a small amount
These totals vary based on the company and your contract.
What is a guarantor for an apartment and how it differs from guarantor companies
A guarantor for an apartment refers to the traditional role of someone who legally promises to cover your rent and repair costs if you cannot. This is usually a close family member, employer, or someone with a stable background in Japan. Since this can be a huge financial responsibility, it is rare for people without close local ties to have one.
In contrast, guarantor companies are professional entities set up to handle this responsibility for many renters. They charge a fee and take on the legal risk instead of a friend or relative. Most apartments in Tokyo and other cities today require tenants to use a guarantor company because it is easier for landlords and more standardized.
How guarantor companies fit into the rental process
When you apply to rent a place in Japan, the real estate agent you are working with will typically guide you through the choice of guarantor company. You may not have a choice of company, as many agencies have deals with specific ones. The process generally includes submitting documentation, such as your residence card, proof of income or employment, and contact details. The screening can be quick, often within a few days, but it depends on the company’s policies.
Even after approval, it is also common for rental contracts that use a guarantor company to require an emergency contact person. This person is not financially liable, but will be contacted if the company or agency cannot reach you, for example in the case of an accident or natural disaster.
Insurance and rental guarantees
Many landlords also ask tenants to sign up for rental insurance at the same time. This insurance covers various risks such as fire, water damage, and liability for injury to others. In combination with a guarantor company for apartments, this gives landlords confidence that rent and property care are protected. Although this means more initial costs compared to other countries, this dual system of guarantor and insurance can help you rent safely and legally in Japan.
Examples of guarantor company situations
Different companies may offer additional support. Some provide language assistance for foreign residents and help resolve issues that arise during your lease. There are also cases where large employers will act as corporate guarantors for their workers, often making the rental application easier.
For foreign students, universities in Japan sometimes partner with guarantor companies to offer special services and reduced fees. This can make renting more affordable and accessible for international students.
Important points to keep in mind
Here are some common factors to be aware of when dealing with rent guarantor companies or considering what is required for your lease:
- Fees can be high – initial and renewal fees add to your upfront moving costs.
- Approval is not guaranteed – a guarantor company may reject your application if income or visa status does not meet their criteria.
- Emergency contact requirement – even with a guarantor company, landlords often need a local contact person.
- Personal guarantors are less common now – many landlords will not accept them even if you offer one.
- Some properties do not require guarantee companies – rare apartments and public housing like UR-managed units sometimes avoid these requirements.
Renting in Japan can feel complex for newcomers, but understanding what is a guarantor for an apartment and how rent guarantor companies work is one of the biggest keys to success. Once you are familiar with these concepts and prepare the required documents, the process becomes much smoother. If you are unsure, always ask your real estate agent to explain exactly what fees and guarantees are needed before you sign any contract.
Thank you for reading our guide on guarantor companies for apartments and rental insurance in Japan. Understanding how these systems work can make your rental experience smoother, but having professional support can make the process even easier.
En Viviendas en Tokio, we provide guidance through the entire rental process, including explaining rent guarantor companies, helping with lease requirements, and choosing the right insurance for your situation. With our help, you can navigate guarantor companies for apartments confidently and find a home that fits your needs.
If you have any questions or would like personalized support, please Contacto today. We’re here to make securing your ideal apartment in Japan simple and stress-free.